Best Business Loans

Can I fund barns, grain stores, cold rooms, packhouses, or yard upgrades?

Short answer — yes, and here are the routes UK farms commonly use

Yes — UK farms, growers, and food producers routinely fund barns, grain stores, cold rooms, packhouses, and yard upgrades using commercial finance. The right route depends on whether you’re buying equipment, building new structures, or upgrading infrastructure. Best Business Loans does not lend directly; our platform matches your needs with suitable lenders and brokers who understand agriculture and post-harvest operations.

For buildings and site works, businesses commonly use hire purchase, secured and unsecured term loans, or refinance of existing assets. For refrigeration, conveyors, graders, sorters, wash lines, and processing equipment, equipment finance and asset finance are typical choices.

Seasonal profiles, VAT loans, and grant-bridging facilities can also be available to align repayments with harvest cycles or claim schedules. Finance is always subject to provider eligibility, status, and affordability checks, and terms vary by lender and asset.

What Best Business Loans does

We help you explore funding options fast by matching your project to providers active in your sector. You’ll submit a short Quick Quote, we analyse your details, then connect you to lenders or brokers that fit your brief. You stay in control, compare terms, and choose what suits your cash flow and timeline.

At-a-glance funding methods for typical projects

Barns and grain stores: hire purchase, secured term loans, asset refinance.
Cold rooms and packhouse kit: equipment finance, finance lease, hire purchase.
Yard upgrades (concrete, drainage, electrics): unsecured business loans, secured term loans.
Grant support: working capital or bridging finance to cover staged costs before reimbursement.
Cash flow smoothing: revolving credit or term loans with seasonal repayments.

Important note on compliance

All information here is general and not advice. Finance options involve risks, fees, and obligations, and may be secured on assets; always review terms and seek professional guidance where needed.

What you can fund — and which finance types usually fit

Most lenders will fund revenue-generating or operationally essential assets and improvements. In agriculture and food production, that includes buildings, storage, environmental control, handling equipment, and core utilities. Below are common categories and how they are typically financed.

Every provider’s criteria differ, but lenders tend to favour durable assets with clear utility, recognisable resale values, and maintenance plans. A simple project summary can help your case, including quotes, timelines, and projected benefits such as reduced wastage or energy savings.

Where planning permission or building control is required, lenders often expect approvals before completion of the facility. Some will accept conditional approvals during underwriting, subject to final evidence before drawdown.

Barns and agricultural buildings

New builds, extensions, and re-cladding are commonly financed via hire purchase or secured term loans. For steel-framed structures, staged payments can be accommodated with drawdowns aligned to invoices. If you already own assets, refinance can release capital to fund construction phases.

Lenders may ask for planning consent, groundworks details, and contractor quotations. Insurance and warranties can be part of the lender’s conditions to protect the asset and mitigate risk.

Common funding routes

Hire purchase for building components and integrated equipment.
Secured term loan for full project costs including civils and groundwork.
Asset refinance on machinery to raise a deposit or cover VAT.

Grain stores, drying, and handling

Bins, silos, dryers, conveyors, and control systems are well suited to equipment finance. Lenders familiar with agricultural kit can accommodate manufacturer stage payments and commissioning milestones.

Asset-backed deals typically offer competitive rates due to strong security value. Seasonal or stepped repayments can align with post-harvest cash inflows.

Cold rooms and packhouses

Chillers, freezers, insulated panels, compressors, evaporators, and pack lines are core operational assets. Equipment finance (hire purchase or finance lease) is common, especially where items can be serialised and valued.

For integrated packhouse upgrades, a blended approach can fund plant, electrics, water, floors, drainage, and building works. Some providers will wrap ancillary costs within an overall facility.

Yard upgrades and infrastructure

Concrete aprons, drainage, effluent containment, lighting, and three-phase upgrades can be financed with unsecured or secured term loans. Where there is a direct link to capacity, safety, or compliance, lenders are more comfortable.

Evidence of improved efficiency, compliance with EA and HSE expectations, and reduced maintenance often strengthens the case. Photographs, contractor quotes, and a short scope of works are useful exhibits.

Eligibility, costs, and what lenders look for

Eligibility depends on time trading, financial performance, credit profile, and the project’s purpose. Many providers focus on established UK businesses that can show stable turnover or strong seasonal performance. Start-ups and sole traders are typically out of scope for our platform.

For farm businesses, lenders consider commodity mix, contracts, crop cycles, assurance schemes, and diversification income. Food producers and packers may be assessed on customer concentration, margins, and stock/invoice controls.

Providing recent management accounts and bank statements helps demonstrate affordability. A concise narrative about how the project reduces wastage, energy costs, or transport time is persuasive.

Rates, terms, and security at a glance

Terms: typically 2–7 years for equipment; 3–10 years for buildings and infrastructure.
Security: plant and machinery, debentures, or asset-specific security; personal guarantees may be requested.
Repayments: fixed or variable; seasonal, stepped, or deferred profiles can sometimes be arranged.
Costs: interest, documentation, and possible arrangement fees; early settlement rules vary by provider.

VAT, grants, and co-funding

VAT can be significant on construction and equipment projects, so some providers offer short-term VAT loans. This can ease cash flow until your VAT return is reclaimed, subject to status. Always confirm eligibility and timing with your accountant.

Many UK farms also combine commercial finance with government grants. You may find useful updates via DEFRA and the RPA on current schemes; grant availability and criteria change over time.

If you’re eligible for the British Business Bank’s Growth Guarantee Scheme via participating lenders, it may help where security is limited. Availability and terms are at the lender’s discretion, and fees or guarantees may apply.

What strengthens your application

Updated accounts, bank statements, and aged debtor/creditor lists where relevant.
Formal quotes, plans, and permissions where required.
Evidence of benefits: reduced spoilage, improved throughput, energy savings, compliance.

How to get started — simple steps and realistic timelines

Getting finance-ready is straightforward if you prepare the basics. Most lenders can give an initial view in days once core information is supplied. Complex builds or multi-supplier installations may need extra time for diligence and documentation.

Best Business Loans streamlines discovery by matching your project to suitable providers. You’ll avoid cold approaches to lenders who are not active in your niche.

Submitting a Quick Quote carries no obligation and is free. You can decide on next steps after you see potential routes.

Step-by-step process

Outline your project: purpose, budget, suppliers, and timeline.
Complete our Quick Quote with key facts about your business and requirements.
Review introductions to relevant lenders or brokers and share documents securely.
Compare terms, repayment profiles, and fees; ask questions before you commit.
Proceed with the provider you prefer and agree a drawdown schedule.

Documents checklist

Last 2 years’ accounts (if available) and recent management figures.
3–6 months of business bank statements.
Asset quotes, building plans, and permissions where applicable.
Insurance details and maintenance/service plans for equipment.

Typical timelines

Equipment finance: decision in days; drawdown aligned to delivery/commissioning.
Term loans for builds: 1–4 weeks depending on complexity and security.
Refinance: often faster if assets are easily identifiable and valued.

Ready to explore options now? Get your free Quick Quote and see which providers are active for your sector and project.

If you operate across agriculture and agri-food, you can read more about sector-specific considerations here: farming loans. This page explains how our matching approach helps established farms.

Remember: we do not supply loans directly and cannot guarantee an outcome or the lowest rate. We aim to introduce you to relevant, credible providers so you can make an informed choice.

FAQs — funding barns, grain stores, cold rooms, packhouses, and yard upgrades

Can I fund both the building and the equipment together?

Often, yes. Some providers will structure a facility that covers the building works and the integrated plant, while others prefer separate agreements for clarity and security. Your introductions can include providers familiar with blended projects.

Do I need planning permission before applying?

You can usually start discussions without it, but full approval may be required before final drawdown. For certain agricultural buildings, permitted development may apply; always confirm with your planning authority. Lenders will want proof that the build complies with planning and building regulations.

Can repayments be seasonal to match harvest cash flow?

Many agricultural lenders offer seasonal or stepped profiles. This helps align repayments with income peaks without stressing cash flow mid-season. Tell us your preferred profile upfront so we match accordingly.

Will lenders fund second-hand equipment for packhouses?

Yes, provided the asset is identifiable, maintainable, and sensibly valued. Older kit may reduce available terms or affect rates. Inspection reports and service history can help.

Can I finance site drainage, effluent handling, and concrete aprons?

Yes, where these works are integral to operations, safety, or compliance. Unsecured term loans often suit smaller packages of works. Larger programmes may require secured facilities or a mix of products.

How is VAT handled on build or equipment projects?

You may be able to use a short-term VAT facility to bridge the VAT element until your return is reclaimed. Availability depends on provider appetite and your profile. Always confirm treatment with your accountant.

What deposit will I need?

Deposits vary by asset and lender; 5–20% is common for equipment via hire purchase. Term loans may not require a deposit but will assess security and affordability. Your introductions will outline typical expectations.

How fast can I get a decision?

Simple equipment deals can be agreed in days once documents are in order. Complex builds take longer due to additional checks and staged drawdowns. Early engagement with suppliers and clear scopes accelerate the process.

Can I combine grants with commercial finance?

Yes, many farms combine the two. Lenders can fund your contribution and, where appropriate, bridge timings until grant payment is received. Provide grant award letters and claim schedules to speed up assessment.

Is this regulated by the FCA?

Commercial lending for limited companies is generally outside consumer credit regulation. However, financial promotions must be clear, fair, and not misleading. Best Business Loans operates as an independent introducer and does not provide financial advice.

Need a fast, no-obligation eligibility check?

Submit your Quick Quote now for an introduction to providers who understand barns, grain storage, cold chain, packhouses, and yard infrastructure. It’s free to enquire, secure, and you stay in full control. We cannot guarantee approval or the lowest rate, but we aim to save you time and improve your options.

About Best Business Loans

BestBusinessLoans.ai helps established UK businesses explore finance options using AI-enabled matching and a trusted network of lenders and brokers. We do not offer loans directly, set rates, or make lending decisions. Your information is handled confidentially and only shared with relevant professionals aligned to your enquiry.

Editorial and compliance note

Content for this page was prepared by our Agriculture & Agri-Food Editorial Team and is for information only. Finance is subject to status, affordability, and provider criteria; fees or security may apply. Updated October 2025; schemes and eligibility can change, so please check the latest details with official sources and your advisers.

Next steps

Tell us what you need to fund and your timeline.
Get matched with providers who know your sector.
Compare options and choose the route that fits your cash flow.

Start now — it takes minutes to submit your Quick Quote, and there’s no obligation to proceed.